Edibles still on top

2016 State of the Industry Report: Crops & Production

Edibles still on top

Karen E. Varga

Growers’ crop line-ups remained by and large similar to last year, with the most significant increase in production appearing in finished produce, up 4% from last year, and decrease in potted flowering plants, down to 38% from 44%. About 13% of growers last year projected that finished produce would be the crop that they increased production of the most. Annuals/bedding color is still being grown by the majority of growers, with perennials following very closely behind.

Back in 2011, 57% of growers planned to produce more vegetable plants, and that increase continued in 2014 with 43% of growers, as edibles gardening continued to rise, but we’re not seeing as big of increases as of late. Grow-your-own is still popular, as shown by the 60% of growers who are still producing edible crop transplants, but they seem to have worked out how much supply they need for their local demand. This was the first year we asked about cannabis production, and 1% of growers have reported adding it.

As we had seen an increase in direct-to-consumer sales and predicted continued growth in the area, we gave respondents more specific options to determine who exactly their major customers were. Direct-to-consumer retail sales ended up being one of the most significant increases we saw in this year’s State of the Industry Report compared to 2015, with fewer growers reporting selling to independent garden centers. Overall, 66% of growers said that one or more direct-to-consumer channels were their biggest customers. Leslie Halleck shares why she thinks that is in “Leslie's Take” below.

The majority of growers are still incorporating sustainable practices and equipment into their production. This year, 67% of respondents reported doing so.

Leslie’s Take

Edibles are still queen when it comes to taking the lion’s share of your greenhouse bench space. Bedding plants and perennials aren’t far behind, along with herbs. Finished produce is the only category that benefited from a boost, with flowering potted plants taking a bit of a dive. However, growers shouldn’t lose sight of the potential growth in demand for easy-care blooming potted plant with younger customers by disregarding this category. Overall, percentages are lower, perhaps because some growers have economic concerns, or are making space for cannabis, which makes its debut on the survey this year. More on expanding into produce: bit.ly/2cQR8bA More on herbs trends: bit.ly/2cM45EO More on gift plants: bit.ly/2cM5ICg

Photo courtesy of Hoffman Nursery

Industry Insights

“I think it’s doing pretty well. I think the industry needs to have a little shift in the thinking, though. I think the thinking is — and this probably sounds harsh — that we have to stop complaining that there aren’t as many people in the industry and have to a mind-shift toward getting more people interested in plants and the industry. I think that we need to make sure we mean more to the customer and the ultimate consumer. And we have to figure out how to mean more to Millennials since they are such a huge group.” - Jill Hoffman, owner of Hoffman Nursery in Rougemont, N.C.

Leslie’s Take

Rankings for 2017 plans reflect those of last year’s survey, with perennials still at the top of the list. This shouldn’t surprise anyone, as customers are looking for plants that are easy to care for. Plus, they’re keenly focused on plants that offer benefits to wildlife and pollinators, as well as sustainability issues. Landscapers are looking for plants that use less water and are also more useful for pollinators. Perennials can better deliver on all fronts than their bedding counterparts.

The only category that has moved up in the ranks is finished produce, which again bumped flowering potted plants down a rank. That’s not surprising, as demand for fresh local produce continues to grow, more ornamental growers are stepping in to fill the void. But across the board, the percentages of planned increases are down. That may signal a bit of hesitancy on the part of growers to commit to the numbers they grew this year for 2017 or they may be transitioning into alternative crops. More on bedding plant shifts: bit.ly/2d0RSv7

Leslie’s Take

While drought stress and water conservation continue to be real factors impacting both how landscapers spec plants and homeowners make plant choices, a majority of growers still aren’t making the commitment to grow more drought-tolerant plants. While many in the South and Southwest have had no choice but to make these shifts, I suspect areas that perceive themselves to be “water-rich” may continue to hold out. The Northeast took a big hit this past summer, in terms of drought, so changes may be forced upon its residents, and thus growers, sooner rather than later. It’s not only drought tolerance that should be of concern, but heat tolerance as well. I’d look to see more plant breeding efforts concentrated in this area. More on selling trees during a drought: bit.ly/2b4mTi9

Photo courtesy of Obra Verde Growers

Industry Insights

“[Drought-tolerant crops have] been a really big deal. We’ve been doing a lot with [Australian] and South African stuff that’s drought resistant. The ornamental industry has really taken that on, and so many people have to remove their lawns and look at other landscape options and they are all going drought tolerant. With the water cutbacks, there has been a huge push toward drought-tolerant crops.” – Joe Walker, owner, Obra Verde Growers in Valley Center, Calif.

Leslie’s Take

WOW. So this is one of the more significant answers to focus on, in my opinion. Last year, IGCs topped the list in terms of being your biggest customer. This year, sales to IGCs and mass merchants are down. 53% of respondents are selling their material direct to the end consumer as a retailer, and 66% of overall respondents are selling to direct to consumer in some form. Farmers market sales direct to the end consumer are also up. With more growers answering the survey this year, it could simply be that more grower/retailers have provided feedback. Or, it could mean more growers are choosing to shift to direct retail channels, or a combination of both. In my analysis last year, I wrote that I suspected we would see growth in the direct-to-consumer sales. I’ve also written about growing opportunities to better serve the end customer directly, and taking charge of direct marketing endeavors; these numbers may indicate this very shift is now happening in a serious way. More on attracting customers: bit.ly/2cM3QK0

Photo courtesy of Barry Ritter

Industry Insights

“I’ve really gone probably 90-95 percent [natural or organic]… I really like using predators and natural fungicides to eat another fungus, or nematodes in the soil to eat the larval stages of the insects. It’s amazing how well it works, how cool it is.” – Barry Ritter, owner of Ritter Perennials in St. Louis, Mo.